Bidding wars are back.
I’ve been involved in several multiple-offer situations this year, as have a number of my colleagues. It’s not uncommon right now. A quality house in a quality neighborhood – priced to sell – is going to garner immediate interest. It’s just the way it is. Unless you’re viewing the market through the prism that Case-Shiller puts out every month.
Just last week, Case-Shiller reported that Atlanta was at a 16 year low. Case-Shiller is designed for people that view Atlanta as a single real estate market, evidenced by the fact that it’s based on a 28 county analysis. It’s really odd, when you think about it. It’s like telling Ritz-Carlton that they function within the same hospitality market as Comfort Suites, or explaining to Mario Batali that the $30 plate of fennel pollen dusted sweetbreads that he’s plating up at Babbo are in the same dining “”market”” as an extra value meal at McDonald’s.
Of course, they are. But they’re really not.
If you offered me one million dollars to name 18 metro Atlanta counties, I probably couldn’t do it. 28 metro Atlanta counties? Not a chance. Why we still accord any value on a housing index based on a 28 county area masquerading as “”Atlanta””, I’m still not sure.
All of that being said, I was thrilled to recently read an article in the Wall Street Journal about the return of the bidding war. You should really check it out, it’s a far more accurate depiction of the Atlanta market that I’ve been getting to know these past few months.
A little taste:
Competitive bidding in the current environment isn’t producing huge price increases or leaving sellers with hefty profits, as occurred during the housing boom. Still, the bidding wars caused by tight inventory provide the latest evidence that housing demand is starting to pick up after a six-year-long slump.
The Relevant Linkage